BASF Coatings is expanding its production capacities in Caojing, China, to better address the rising demand for automotive coatings in the Asia Pacific region.

BASF’s Coatings division has successfully upgraded its production capacity for polyester and polyurethane resin at its Caojing plant in Shanghai, China. Initially launched in 2015 with an annual capacity of 8,000 metric tons, the plant’s capacity has now been increased to 18,800 metric tons per year, more than doubling its original output.

Additionally, BASF Coatings plans to optimize its electrocoat binder production at the Caojing site, starting in early 2026. This move is part of a strategic effort to strengthen BASF Coatings' position in the rapidly growing automotive coatings market, allowing the company to better support the demand for all coating layers used by automotive OEMs and component manufacturers in the Asia Pacific region over the next decade.

“The increased production capacity for resins and planned additional capacities for binders will enhance our supply reliability, enabling us to meet the growing demand for automotive OEM coatings in the region. This expansion underscores our commitment to local production and our ability to respond swiftly to customer needs,” said Patrick Zhao, Senior Vice President, Global Automotive OEM Coatings at BASF.

Situated in the Shanghai Chemical Industry Park (SCIP), BASF's Caojing resin plant serves the automotive coatings sector in China and the broader Asia Pacific region. The facility produces a variety of coating raw materials, such as acrylics, polyester, polyurethane, e-coat binder, and intermediate grinding resin. Significantly, the plant is fully automated and operates on 100% renewable energy. This year marks the 10th anniversary of the plant's successful operations.

“Over the past decade, the Caojing plant has set a benchmark for safe operations, innovation, and sustainability. The Shanghai Chemical Industry Park is committed to providing our valued partners, such as BASF, with a high-quality development environment and comprehensive support, including energy supply and improved utilities,” said Jinhua Hou, Deputy Director of the Shanghai Chemical Industry Park Administrative Committee.

Source: BASF